"The purchase price represents a 67 percent premium to Friday's closing share price and a 63 percent premium to WestJet's 20-day volume-weighted average trading price", WestJet explained in a news release.
WestJet started in Calgary, Canada in 1996 and has expanded from a low-priced domestic airline to an global carrier with flights to the United States, Europe and the Caribbean.
However, Air Canada, which hatched its own plan to buy Canadian Airlines, made several moves to complicate the Onex bid, including adopting a poison pill created to drive up the price.
Onex first approached WestJet's board in March.More news: Britney Spears Not Ready for Vegas Residency, Says her Manager
In February, WestJet announced plans to scale back capacity growth to cut costs and attract higher-paying customers to turn it around after a hard 2018.
He notes if the sale goes through, WestJet shares will not be able to be traded, as Onex has indicated it plans to take the company private. "You can buy Onex shares on the open market, but they would no longer hold WestJet shares".
Tawfiq Popatia, a Managing Director at Onex, said "WestJet is renowned internationally for its unparalleled guest experience and employee culture".
"Since our first flight in 1996, WestJet has been singularly focused on providing better options for the Canadian travelling public and this transaction retains that commitment", Clive Beddoe, WestJet's founder and chairman, said in a statement.
Popatia added that Onex will continue the current employee profit-sharing program that sees a portion of profits distributed twice a year to all 14,000 WestJet employees, on top of an annual bonus.More news: Microsoft Rolls Out Second Quality Update for Windows 10 Version 1903
The committee subsequently recommended the transaction to the WestJet board, who are recommending shareholders vote to accept the offer.
"Other workers at WestJet are able to sit down at the table and negotiate with the company when changes are made because they are unionized", Scanlan said.
"WestJet was generally well-funded and was already embarking on a large and highly competitive expansion plan".
The takeover is subject to a number of conditions, including court, shareholder and regulatory approvals. "In our view, a private equity owner of an airline is likely to remain rational with respect to its approach to yields and profitability vs. market share", he said in a note to clients.
This time around, the assessment seems to be that Onex is a suitable buyer.More news: Two coffees a day could help you live longer, research suggests